Employment Rights Bill: The Biggest Changes to UK Employment Law in Years

by | Jul 28, 2025 | Employment Law, Practical Tips

Employment Rights Bill: The Biggest Changes to UK Employment Law in Years

The UK Government has introduced one of the most significant workplace reform packages in recent decades through the Employment Rights Bill.

The Bill, expected to become law shortly after Parliament’s summer recess in 2025, represents a major shift in the balance of employment rights and responsibilities for employers across the UK.

For organisations, the reforms will affect several key areas including:

  • Employee rights and dismissal protections
  • Trade unions and industrial action
  • Redundancy consultation requirements
  • Family leave entitlements
  • Workplace harassment responsibilities
  • Flexible working rights
  • Zero-hours contracts and casual work

While some changes begin quickly, many of the most significant reforms will be phased in across 2026 and 2027.

This guide looks back at the key developments and outlines what employers should now be preparing for.

Key Changes Introduced in 2025

Trade Union and Strike Rules

New legislation has begun reversing some previous restrictions on industrial action.

Changes include:

  • Removal of certain barriers to strike action
  • Greater protections for workers participating in lawful strikes
  • Simplified processes for trade unions organising industrial action

What this means for employers

Organisations with recognised unions—or those where unionisation may increase—should focus on early engagement and constructive dialogue with employee representatives.

Training line managers to manage workplace relations lawfully and fairly will also be important to prevent disputes escalating.

 

Major Changes Coming in 2026

Higher Penalties for Collective Redundancy Failures

  • One of the most significant financial risks for employers relates to redundancy consultation.
  • If an employer fails to consult properly during collective redundancies, the protective award could increase from 90 days’ pay to up to 180 days’ pay per employee.

Employer action

Review redundancy procedures and ensure consultation processes are compliant and well documented.

Day-One Family Leave Rights

Eligibility requirements for some family leave rights will be removed.

Under the reforms:

  • Paternity leave will be available from day one of employment
  • Unpaid parental leave will also become a day-one right

Employer action

HR policies and employee handbooks should be updated to reflect these changes.

Stronger Whistle-blower Protections

  • Employees reporting sexual harassment will receive enhanced protection from retaliation or dismissal.

Employer action

Organisations should review whistleblowing policies and ensure confidential reporting mechanisms are effective.

Creation of a New Fair Work Agency

  • A new national enforcement body will be established to oversee compliance with employment rights and help resolve workplace disputes.

Employer action

Employers should expect more active enforcement of workplace regulations in the future.

Easier Trade Union Recognition

The recognition process for trade unions will become more streamlined.

Reforms include:

  • Simplified recognition procedures
  • Electronic and workplace balloting for union votes

Employer action

Employers may see an increase in union activity and should prepare leadership teams accordingly.

 

Further Reforms Arriving in October 2026

Restrictions on “Fire and Rehire”

  • The controversial practice of dismissing staff and rehiring them on new terms will only be permitted in limited circumstances.

Employer action

Businesses should explore alternative approaches to changing contractual terms and focus on consultation and negotiation.

Duty to Inform Staff of Union Rights

  • Employers will be required to inform employees of their right to join a trade union.

Stronger Anti-Harassment Duties

  • Employers will have a proactive duty to prevent sexual harassment in the workplace.
  • They will also be required to protect employees from harassment by third parties, such as customers or clients.

Employer action

Policies, reporting procedures and workplace training should be reviewed and strengthened.

Longer Time Limits for Tribunal Claims

  • Employees will have six months instead of three months to bring claims to an employment tribunal.
  • Cases are heard by the Employment Tribunal.

Employer action

Employers will need to retain documentation and investigation records for longer periods.

 

Major Workplace Reforms Expected in 2027

New Equality and Inclusion Requirements

Employers will need to develop and publish:

  • Gender pay gap action plans
  • Workplace menopause action plans

Pregnant workers will also receive stronger workplace protections.

Zero-Hours Contract Reform

  • Workers on zero-hours, low-hours or agency arrangements who regularly work certain hours may become entitled to guaranteed hours contracts.
  • Employers may also need to provide notice or compensation when shifts are cancelled or changed at short notice.

Employer action

Review workforce models that rely on casual labour or agency workers.

New Bereavement Leave Rights

  • Employees experiencing miscarriage before 24 weeks of pregnancy will gain the right to unpaid bereavement leave.

Changes to Unfair Dismissal and Flexible Working

  • The current two-year qualifying period for unfair dismissal protection will be removed.
  • Instead, employers will rely on legally defined probation periods.
  • Employers refusing a flexible working request will also need to demonstrate clearly why the refusal was reasonable.

Employer action

Contracts, probation policies and flexible working procedures should all be reviewed.

 

What Employers Should Be Doing Now

Even though some reforms are still approaching, organisations should begin preparing now.

Key steps include:

  • Briefing senior leadership teams on upcoming legal changes
  • Reviewing policies on redundancy, harassment, whistleblowing and family leave
  • Updating employment contracts where necessary
  • Training managers on flexible working and workplace conduct expectations
  • Planning for additional HR or legal support during implementation

Employment law reform of this scale will require careful planning and proactive communication.

Supporting Employers Through Employment Law Change

The reforms introduced through the Employment Rights Bill represent one of the most significant changes to UK workplace regulation in decades.

For many organisations, the key challenge will be preparing early and implementing changes in a structured and compliant way.

At Nectar HR, we help organisations:

  • Review HR policies and employment contracts
  • Prepare for new employment law requirements
  • Train managers and leadership teams
  • Manage complex workplace changes with confidence

If you would like support preparing for these reforms, contact our team to discuss how we can help your organisation stay ahead of the changes.